Alabama Business Tax Calculator
Calculate corporate income tax, franchise tax, and gross receipts tax for businesses operating in Alabama.
Why calculating business in Alabama is different
Alabama has a progressive income tax system with relatively low property taxes but moderate sales tax rates across counties.
Alabama Business Interactive Tool
This calculator uses the latest 2026 data for Alabama, including the minimum wage of $7.25 and the specific state income tax rates (2% - 5%).
Frequently Asked Questions about Alabama Business
What is the corporate tax rate in Alabama?
Corporate tax structures vary. In addition to potential corporate income taxes, businesses in Alabama must also consider unemployment insurance taxes, sales tax collection (4%), and local business licenses.
Do LLCs pay tax in Alabama?
LLCs are typically pass-through entities, meaning profits pass through to the owners' personal tax returns and are taxed at the personal 2% - 5% rate. However, Alabama may also impose an annual LLC franchise fee.